§ 26-3-103 — General qualifications for authority to transact business

(a) To transact insurance in this state an insurer shall
be in compliance with this code, and its charter powers and
shall be an incorporated stock insurer, an incorporated mutual
insurer or a reciprocal insurer of the same general type as may
be formed as a domestic insurer under this code.
(b) No foreign insurer shall be authorized to transact
insurance or business on the mutual assessment plan, stipulated
premium plan or any similar plan in this state if that insurer
does not maintain reserves as required by chapter 6 of this code
as applicable to the kinds of insurance or business transacted,
wherever transacted in the United States. This prohibition does
not apply to mutual or reciprocal insurers doing business on the
cash premium plan but providing for contingent liability of
policyholders or subscribers.